Pakistans Relationship with IMF and World Bank Essay -- Pakistan Econ

Pakistans Relationship with IMF and World Bank My topic deals with Pakistan, its human relationship with the IMF and World Bank, and its internal problems that argon causing unemployment, poverty, economic crisis and hunger. I shall be analyzing the short letter using the neo-classical theory, as it is what the economists of the Pakistan government and the IMF are using to take over the economic instability of the country. Situated in the sub-continent, Pakistan is a low-income country, with great ascertain for growth. Unfortunately, it is held back from reaching middle-income status by chronic problems like a rapidly growing creation, sizable government deficits, a heavy habituation on foreign aid, recurrent governmental instability and large military expenditures. It is to address these fundamental faults in Pakistans economy that the IMF has initiated the Structural valuation account Programs (SAPs) in the country. This is discussed in further detail later in the p aper. wish all developing countries, Pakistans population is for the most part employed in the plain sector, which accounts for about 48 percent of the labor force. In like a shots world the Industrial and Service sectors are the largest growing areas of a developed countys economy. Yet Pakistan only employs 39 percent of its population in Service, and a minute 13 percent in Industry. This is a paltry figure, compared to the employment statistics of a developed country. Pakistan is also heavily hooklike on a single export crop, cotton. Hence the countrys fortunes rise and fall with the cotton market. It is no wonder that there are so many poverty stricken people in Pakistan. When nearly half the population is involved in a very mercurial market, a lot of the time, a lot of people will be burnt by price fluctuations. The country is also subject to the mildness of the weather. Focussing on a major cash crop representation very little diversification. This transla tes to mass hunger and hard times for the agricultural sector whenever the agrarian lands are ravaged by floods, or conversely, by droughts. Even more importantly, Pakistans agricultural sector is marked by large landowners, controlling most of the production. Hence, only a minimal come in of the profit from exports goes to the poor people working for the large farmers. It is these people who produce a large portion of P... ... what appears to be an inevitable crash of its economy. The situation of the poor and under privileged could also be alleviated in the end as long as the government decides to start spending capital on developing an infrastructure that can help feed the peckish by providing them with jobs. Nevertheless, there are no easy options left. Only the indescribable ones remain. It is, however, important that the pain of reform be distributed equitably, and not born largely by the poorer classes, as is very often the case. There are bully times ahead. Unfor tunately, there is little evidence that the Pakistani ruling elect is aware of the gravity of the situation or that it has what it will take to confidential information the country out of its mess.BibliographyBibliographyAndleeb Abbas, Pakistan A Puppet on the IMF ChainM Sharif, IMF tranche $280 mn Prof. M Rashid, Fracturing Social ChangeIMF online resources World Bank online resources Pakistan figure Report, 98-99Dialogue between IMF and Pakistan, 99 Lappe, Collins, Rosset, Esparza, World HungerProf. Dr. M.A. Hussein Mullick, move the country out of its present financial crisis the challenge for the present governing